This article provides an economic assessment of federal regulatory policy toward airplane noise as encapsulated in the 1990 Airport Noise and Capacity Act (ANCA). This act mandated the elimination of certain aircraft, such as the Boeing 727 and DC-9, from all U.S. airports by the end of 1999 to meet quieter noise requirements. We find that the present discounted benefits of the ANCA, reflected in higher property values for homeowners, fall $5 billion short of the ANCA's cost to airlines, reflected in the reduced economic life of their capital stock. More fundamentally, we find that the net benefits that could have been generated by an economically optimal airplane noise tax amount to only $0.2 billion (present value). It appears that noise regulations have generated substantial costs to society when, in fact, there was little justification on efficiency grounds for regulatory intervention in the first place. Copyright 1999 by the University of Chicago.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Volume (Year): 42 (1999) Issue (Month): 2 (October) Pages: 723-43 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:ucp:jlawec:v:42:y:1999:i:2:p:723-43
Contact details of provider: Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637 Fax: (773) 753-0811 Email: Web page: http://www.journals.uchicago.edu/JLE/
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)